I asked this question earlier and still unclear about the equation. The amount of expenses has to be found. Revenue 2028 $6000 Dividends declared $0 Expenses for 2028 $ Amount Unknown 1/1 RE $12000 12/31 RE $8000 Step 1 This is the equation I was given. Closing RE=Opening RE+ Net income loss-Dividends paid (How do you know it is a loss if you haven't even found the expenses amount yet??) Also why below is loss in parentheses below? I need to know why Net Income LOSS is used $8000=$12000+Net income loss-$0 Net Income Loss=$8000-$12000+$0 Net Income (loss)=-($4000)   Step 2  Calculate expenses for 2028 Net Income LOSS=Revenues-Expenses -$4000=$6000+$4000 Expenses=$6000+$4000 Expenses=$10000

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Financial Planning And Forecasting
Section: Chapter Questions
Problem 3P: AFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of...
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I asked this question earlier and still unclear about the equation.

The amount of expenses has to be found.

Revenue 2028 $6000

Dividends declared $0

Expenses for 2028 $ Amount Unknown

1/1 RE $12000

12/31 RE $8000

Step 1

This is the equation I was given.

Closing RE=Opening RE+ Net income loss-Dividends paid

(How do you know it is a loss if you haven't even found the expenses amount yet??) Also why below is loss in parentheses below? I need to know why Net Income LOSS is used

$8000=$12000+Net income loss-$0

Net Income Loss=$8000-$12000+$0

Net Income (loss)=-($4000)

 

Step 2

 Calculate expenses for 2028

Net Income LOSS=Revenues-Expenses

-$4000=$6000+$4000

Expenses=$6000+$4000

Expenses=$10000

 

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